This week in banking news - home loans, ANZ cut savings accounts' interest rates and the chances of an October RBA cut

By Tara McCabe ·
Fact Checked
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In this week’s banking recap, we look at ME ditching credit card plans, ANZ’s interest rate cuts on savings accounts, smaller lenders taking on the big banks with home loans and whether the Reserve Bank of Australia (RBA) will cut rates in October.

Will the RBA cut rates in October?

With the RBA’s monthly meeting coming up next week, the big question on everyone’s minds is: will rates be cut once again? The market is fairly confident that the Reserve Bank will go ahead and cut, which would bring the official cash rate down to 0.75%, half of what it was at the beginning of 2019. Plus further cuts could mean even lower home loan interest rates. Stay tuned for more news updates on RBA cuts in the coming days!

Small lenders compete with the big banks for the home loan market

Talking of home loans, with the spring property season well and truly underway, a number of smaller lenders seem intent on taking on the big four, in a bid to take back some of the home loan market share. Online lender loans.com.au launched two new investor home loan products on Tuesday 24th September. Plus, ME Bank also made its voice heard by cutting variable principal and interest and interest-only investor home loan rates by 49 basis points. So if you’re searching for a home loan this spring property season, why not check out our home loans comparison page. 

ME bank ditches credit card plans

While ME enjoyed growth in its home loan portfolio this year, on the other end of the scale, the online bank ditched credit card plans, amid the buy now, pay later frenzy. ME’s CEO Jamie McPhee announced plans for more credit card plans last September, but the plans were later abandoned, a fact which McPhee attributes to the growing number of buy now, pay later services, now available in Australia.

Afterpay released statistics earlier this year revealing that only 41% of Aussie millennials use credit cards, a low figure compared to the 58% of young credit card users in 2002. While buy now, pay later could be a large factor in ME’s decision not to introduce more credit card products, Mozo Banking Expert Peter Marshall wasn’t so sure. Marshall suggested that other factors, such as the introduction of new banking regulations may also have caused the online bank to drop its plans.

Of course if you think a credit card could be better for you, then why not head to Mozo’s credit card comparison page, to see what credit card would best suit your lifestyle.

Bad news for ANZ savings account customers

On the topic of interest rate cuts this week, interest rates for the ANZ Progress Saver and ANZ Online Saver also fell by 0.10%. While the ANZ Progress Saver’s base rate remains at 0.01% the bonus rate fell from 1.94% to 1.84%, making the new maximum rate 1.85% (if you meet the bonus rate requirements).

Plus if you’re a current ANZ Online Saver customer, then you might not be too pleased to hear that the base rate for this savings account has been cut from 0.15% to 0.10%. And if you’re a new customer thinking of signing up to the Online Saver account, then your new bonus rate will be 1.75%, with the new maximum rate standing at 1.85%.

If you don’t think you’re getting the best interest rate on your current savings account, then why not head to our savings accounts comparison page to see what else is out there. Or check out the deals below to see if you could be earning more interest on your savings.

Compare savings accounts - rates updated daily

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Boost Saver with Go Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.50% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Intro bonus rate of 1.50% for first 3 months, reverting to 1.20% after. Deposit $2,000 each month and make 5 eligible payments from your Go Account. If you are between 18 and 25 deposit $1,000.

    Enjoy a savings account bundled with a spending account. No monthly fees. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account

    Go to site
    Details
  • placeholder
    Fast Track Saver Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.05% p.a. (for $1 to $250,000)
    0.05% p.a.(for $1 and over)
    Yes up to $250,000

    Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.

    Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.

    Go to site
    Details
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    High Interest Savings Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.35% p.a. (for $0 to $250,001)
    0.25% p.a.(for $0 to $250,001)
    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Kick start your savings with the 4 month introductory variable rate. No fees, no minimum balance, no minimum monthly deposit and no minimum term.

    Go to site
    Details
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    Grow Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.65% p.a. (for $0 and over)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.

    Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.

    Go to site
    Details

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